Quick take: Gold prices gain some ground; Jewellers slide

KUALA LUMPUR: Jewellers Tomei Consolidated and Poh Kong Holdings Bhd fell in early trade Tuesday although gold prices gained some ground after falling on Monday.

Tomei shed 7.61%, or seven sen to 85 sen while Poh Kong fell 6.78%, or six sen to 82.5 sen.

Other gold-related stocks such as Bahvest Resources Bhd fell 2.5 sen to 49.5 sen and MUI Properties Bhd declined one sen to 22 sen.

Gold prices got hit earlier with Covid-19 vaccine news as demand for safe-havens disappeared as investors rushed to value stocks.

Spot gold rose 0.5% to US$1,871.81 per ounce by 0136 GMT, Reuters reported.

It fell to US$1,849.93, its lowest level since Sept. 28, on Monday after U.S. drugmaker Pfizer Inc said its experimental Covid-19 vaccine was more than 90% effective, based on initial trial results.

OANDA senior market analyst Edward Moya said gold prices got hit with a vaccine right hook as demand for safe-havens disappeared as investors rushed to value stocks.

He said Pfizer’s vaccine news was so positive investors had to overlook the short-term headwinds that are hitting the economy.

“The next six months will be a tough time for the US economy as small businesses will not be able to survive the return to lockdowns and restrictive measures.

“Gold appears very vulnerable, but the short-term stimulus trade remains intact as central banks will increase accommodation over the next several months,” he said.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

gold , Poh Kong , Tomei , Edward Moya


Next In Business News

Ahead of election, Macron banks on rosy French economy, new jobs
Analysis-Physical crude oil market steams ahead after Omicron blip
Unilever to weigh raising the US$68.37bil offer for GSK's consumer assets
UK's Johnson plans to scrap COVID-19 self-isolation law
Ringgit on strong recovery path
Bursa Malaysia to see cautious trading next week
Iconic Worldwide on track to become leading glove, face mask manufacturer
Malaysia-focused Technology & Telecommunication Acquisition to list on Nasdaq
CPO futures to trade lower next week on weaker exports
Citigroup results show restructuring has its costs

Others Also Read